Paying FICA taxes for previous years

[sparkash28]

Hello there,

Hopefully someone can help me on this. My father receives a 1099-NEC for some of the contractual work that he does every year (4-5K). For whatever reason, the way he’s been filing for the last couple years, no FICA taxes were being deducted (Schedule 1, 1040, Line 8z was being listed as ‘Nonemployee compensation from 1099-NEC’). I’ll be helping him file this year so that these are deducted correctly. Is there an easy way to pay FICA and earn the Social Security and Medicare credits for those unpaid, previous years?

I'd appreciate any help. Thank you. 

[VolvoGirl]

You would have to amend the previous years.   Didn’t the 1099NEC income show up on Schedule C?  Did he have a Net Profit or a loss?

You pay Self Employment tax (Scheduled SE) FICA on a Net Profit of $400 or more on Schedule C in addition to regular income tax on it.   You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400).  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  

[VolvoGirl]

It should have been on Schedule 1 line 3 for Business Income Schedule C.

[sparkash28]

@VolvoGirl Thank you for responding to this thread.

Yes, I'll be following this method and helping him file this year. 

Any guidance on amending returns? Also, if I do pay the FICA taxes for the previous years, will the now applied Social Security and Medicare credits automatically be reported from the IRS to the Social Security Administration ... or would I have to do fill out some other paperwork as well? Apologies, as I type this, I realize this is getting more and more complicated .. 

[VolvoGirl · Accepted solution]

You just have to amend the 1040.   You can use Turbo Tax for the last 3 years.  So before that you need to amend by hand or go to a local tax place or accountant.  You shouldn’t need to tell Social Security.  

How to Amend a prior year

https://ttlc.intuit.com/community/amending/help/how-to-amend-change-or-correct-a-return-you-already-...

[sparkash28]

@VolvoGirl Appreciate all your help and guidance! Thank you!